Question on controlled business

Message Author
delicious-small Add to delicious
yahoomyweb-small Add to YahooMyWeb
blinklist-small Add to BlinkList
PostPosted: Wed May 04, 2011 4:17 am   Post subject: Question on controlled business  

I am just starting out selling life and health insurance. I have a question about the term controlled business. I understand that depending on the state you are only allowed to make a certain percentage commission from policies written on immediate family members or written on yourself, or risk having your license revoked or suspended. What is the definition of immediate family, and does this mean I cannot sell them policies until I start selling to others and building income first. Will the commissions be automatically lowered to the correct percentage if I have not written enough policies on other people, how does one do the math exactly? I was hoping to start by selling to some family members, including my parents, my wife and myself. Thanks for the help. (I live in NY and have just received my residents license)

Register Now to have your Insurance queries solved.

PostPosted: Wed May 04, 2011 6:59 am   Post subject:   

Someone’s spouse, parents and grandparents, children and grand children, brothers and sisters, mother in law and father in law, brothers in law and sisters in law, daughters in law and sons in law. Adopted, half, and step members are also included in immediate family. See also first degree relative.

I guess that's what we refer to as one's immediate family!
Senior member
Leave a quick message


Joined: 02 Feb 2006
Posts: 1546

215.91 Dollars($)

PostPosted: Mon May 09, 2011 6:54 pm   Post subject:   

I am still very confused about this? Thanks for the reply but can someone answer this question more clearly?

New member
Leave a quick message

Joined: 09 May 2011
Posts: 1

1.06 Dollars($)

PostPosted: Tue May 10, 2011 12:54 am   Post subject:   

Controlled business is that which is written on certain persons, such as immediate family members, which the insurance company may limit or decline to accept the application. It is not generally dictated by state law. It's called controlled business because the insurance company controls what they will and will not accept.

Some companies have exceedingly strict standards for controlled business, other have no restrictions at all. Just ask the company(ies) you represent what their limitations are.


CA-licensed Life & Disability Analyst. CA Insurance Lic #0596197. Also investigating insurance company abuses, and providing litigation support/expert witness services. Send me your questions, and I'll send you my answers.
Forum Expert
Leave a quick message

Forum Expert

Joined: 29 Nov 2009
Posts: 7888

Location: Pomona CA
107.54 Dollars($)

PostPosted: Sat Oct 31, 2015 11:28 pm   Post subject: controlled business  

Is it legal in New York to be licensed to run a controlled business , I know it is maximum 10%

Register Now to have your Insurance queries solved.

Quick Reply
Your Name
Message body
All times are GMT
Page 1 of 1

Get a Quote
Ask Community Experts

flash plugin

Quick Links

Must See


Hot topics in forums

Latest in blogs

    Connection Error: Connection refused